HYDERABAD : Chief Minister Y.S. Rajasekhara Reddy has exhorted cooperative banks to improve their efficiency to withstand the competition from commercial and rural banks, lest their survival will become difficult.

"In light of the stiff competition from commercial banks and rural banks, cooperative banks need to perform or else they will perish," he said at the inauguration of the board of directors' meeting of the National Federation of State Cooperative Banks here on Friday.

"Gone are the days of Nehruvian democratic socialism when cooperative institutions used to be dominant players in rural economies," Dr. Rdddy said.

Measures initiated

Stating that the crisis in the cooperative sector was of "our own making", he observed that successive Governments had not bothered to make them efficient. The cooperative sector was at its worst especially during the TDP rule due to "total dereliction". People had, therefore, elected Congress candidates in the elections to district cooperative central banks.

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